SEBI File Criminal Charges against Sahara Group

Capital Market Regulator – SEBI filed criminal charges against Sahara Firms. Sahara officials said that they submitted the documents but the regulator refused to accept them.

SEBI alleged Sahara Group that they have not followed the regulatory orders. Mr. Subrata Roy – Sahara Group’s Head, is alleged of neglecting the regulatory orders.

As per the Supreme Court verdict the India Real Estate Corporation and Sahara India Housing Corporation were supposed to refund Rs.17400-Crore. SEBI pointed out that the verdict is not obeyed by the groups.

The group’s appeal for granting more time also was rejected. The apex court of India had ordered the groups to present the details of all OFCD – Investors too. However the group has not fulfilled any of the conditions.

Sahara Group was alleged to collect Rs.17400-Crore from nearly 3-Crore investors who invested in Optionally Fully Convertible Debentures (OFCDs).

Sahara Group officials alleged that the SEBI regulator refused to accept their documents when they submitted. Rejecting the allegation the SEBI regulator filed criminal charges against the Sahara Group and its head. SEBI regulator moved their petition against the group before the Mumbai metropolitan magistrate.

SEBI was empowered by SC to attach the properties of Sahara Group if the company fails to fulfill the SC order. Further the SEBI regulator had been given rights to freeze their bank accounts as well.

SEBI regulator said that the group failed to submit the documents on time. SEBI did not receive any details of the OFCD investors. This was rejected by the group officials who claimed timely submission of all documents.

The Sahara group officials said that the regulator rejected their documents when they submitted the documents. Pointing the higher difficulty in presenting nearly 30-Crore documents, the group Sahara appealed for longer period of time.

In a statement the group said that they accept the regulator’s authority to fine the group for delayed submission. However the act of refusal is not expected of from the regulator.

SEBI had refused the appeal of the Sahara Group which asked for time till December- end to submit the documents. Mentioning the fact that the regulator is to distribute the amount to the OFCD investors, SEBI drew near to the court. It asked for further proceedings against Sahara Group.